Newcastle to consider Ashley offer

Newcastle's board have announced they are to "consider" an offer from Mike Ashley following discussions with the billionaire businessman today.

The board met Ashley, who recently bought a 41.6 per cent stake in the club from Sir John Hall's family, to determine his intentions for the club.

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Under stock exchange rules, he was required to submit a formal takeover bid and today's announcement appears to have taken his St James' Holdings Limited group close to that goal.

A statement from the board read: "Further to the announcement by Newcastle United PLC on 25 May 2007, the board of Newcastle United announces that there was a meeting with Mike Ashley and his team earlier today at which there was a useful and constructive discussion.

"The board will now consider its response to the offer from St James Holdings Limited. A further announcement will be made in due course."

The sportswear tycoon invested £55million in becoming Newcastle's biggest shareholder but a full takeover would be worth £133.1million.

Last week, the board announced their intention to meet with Ashley, who City analysts believe will have no difficulty in reaching the 50 per cent-plus mark which was the condition of his 100p-a-share offer.

However chairman Freddy Shepherd, who holds a stake of around 29.8 per cent, will be key to his hopes of acquiring the 75 per cent he would need to make full control almost inevitable.

The publicity-shy Ashley's investment has prompted hopes on the part of the fans that he could be prepared to pour more of his estimated £1.9billion fortune into strengthening on the pitch.

Manager Sam Allardyce is already planning his summer spending, but may yet have a bigger-than-expected budget with which to play.